Silver Mines Ltd (ASX:SVL) has raised $18 million before costs in a placement to institutional, professional and sophisticated investors.
The placement was strongly supported and interest was well in excess of funds raised.
The placement was made at an issue price of $0.16 per share, being a 19.5% discount to the five-day volume weighted average price for fully paid ordinary shares in the company.
SVL will issue 112.5 million fully paid ordinary shares including 312,500 shares to directors of the company or their nominees which are subject to shareholder approval.
Use of funds
The funds raised will be used primarily for:
- progression of and pre-development expenses including exploration associated with SVL’s flagship Bowdens Silver Project;
- exploration activities at SVL’s other projects; and
- corporate and general working capital purposes.
Settlement is expected to take place on Wednesday, February 15, 2023, with shares issued to investors who are not directors on Friday, February 17, 2023.